India's COAI Objects to Preferential Treatment for State Owned Companies

Published on: 13th Jan 2014

Note -- this news article is more than a year old.

The trade group representing India's GSM network operators has expressed concerns over a proposal that would require government bodies to only buy mobile services from the two state owned networks.

Suggested again last week, the move was suggested as a way of propping up the
finances of the two struggling companies.

The COAI said that "that any such move would be arbitrary, incorrect and
unjustified and would be anti- competitive and against all principles of level
playing field,"

If implemented, then Central Government Ministries/Central Government public
sector undertakings and autonomous bodies would be required to give preferential
access to the state-owned networks ahead of the private companies when tendering
for phone services.

The COAI said that the proposal not only causes a distorted marketplace, it
could be unconstitutional.

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